MONTHLY MARKET REPORT :- BHARAT PETROLEUM LTD.

BHARAT PETROLEUM LTD.

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled Maharatna oil and gas company headquartered in Mumbai, Maharashtra. The Corporation operates two large refineries of the country located at Mumbai and Kochi. The company is ranked 358th on the Fortune Global 500 list of the world’s biggest corporations as of 2016. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928, Asiatic Petroleum Company (India) started cooperation with Burma oil company. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene.  On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High.

 The company’s businesses includes

  • Fuel & Services- offering Fuel stations across the country
  • Bharat gas- reaching to 45 million homes
  • MAK Lubricants- offers c complete range of quality products such as Automotive Engine Oils, Gear Oils, Transmission Oils and Speciality Oils
  • Industrial & Commercial- cater to the fuel requirements of around 8000 industries across Public & Private sectors.
  • BPRL- carrying out Exploration & Production activities.
  • International Trade- it involves the import of crude oil and export of finished products

Fundamental Analysis

Bharat Petroleum Corporation Ltd., incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 108,202.33 Crore) operating in Petroleum sector. As on 30-09-2017, the company has a total of 2,169,252,744 shares outstanding. Company has reported net profit after tax of Rs 2357.40 Crore in latest quarter ended on 30-09-2017.

  • The company’s key revenue segments include Petroleum Products which contributed Rs 237263.46 Crore to Sales Value (98.02 % of Total Sales) for the year ending 31-Mar-2017
  • Oil Crude which contributed Rs 3423.19 Crore to Sales Value (1.41 % of Total Sales), for the same period
  • Subsidy which contributed Rs 1172.83 Crore to Sales Value (0.48 % of Total Sales) for the year ending 31-Mar-2017
  • Other Operating Revenue which contributed Rs 188.34 Crore to Sales Value (0.07 % of Total Sales) for the year ending 31-Mar-2017

Fundamentals

Market cap Rs.108,202.33 crore
Face value Rs. 10.00
Book value Rs. 149.77
EPS Rs. 33.26
52 Week H/L Rs. 551.55/ 398.78
Dividend Payout 310.00%
Listed at NSE/BSE
P/E Ratio 12.41
Industry P/E 10.18

Technical Analysis

The stock made 52 weeks high of 551.55 in OCT 2017 and formed Double Top price pattern on weekly and also daily chart with a base around 490 levels. It is currently trading around 500 levels. It may again come down to test the levels of 500 breaking these levels; it would break the base line of double top price pattern which could further put pressure on the stock prices.

  • Forming a double top pattern on weekly chart with base around the levels of 490
  • RSI has also shown correction from over bought zone on weekly chart
  • MACD has given downward cross over on weekly charts

Technically, the stock may move down below the levels of 490 and it could test the levels of 460 & 420 in the next month. Technical stop loss should be at 555.

Supports and Resistance (Monthly)

Resistance 1- 520                             Support 1-490

Resistance 2- 550                             Support 2-455

Resistance 3- 605                             Support 3-395

BPCL DAILY CHART

BPCL6

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